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Jel Classification:J22 

Working Paper
Luxuries, Necessities, and the Allocation of Time

Households enjoy utility from activities that require a combination of time and goods. We classify activities into two types: luxuries and necessities. Luxuries (necessities) are activities for which time and expenditure shares rise (decline) with income. We develop and estimate a model with nonhomothetic preferences and find that time and goods are substitutable in producing activities. Activities are also substitutable among themselves. Hence, wage and price changes cause large reallocations of time and expenditures across activities. This effect is quantitatively important for welfare ...
FRB Atlanta Working Paper , Paper 2021-28

Working Paper
Bundling Time and Goods: Implications for Hours Dispersion

We document the large dispersion in hours worked in the cross-section. We account for this fact using a model in which households combine market inputs and time to produce a set of nonmarket activities. To estimate the model, we create a novel data set that pairs market expenditures and time use at the activity level using data from the Consumer Expenditure Survey and the American Time Use Survey, respectively. The estimated model can account for a large fraction of the dispersion of hours worked in the data. The substitutability between market inputs and time within an activity and across a ...
FRB Atlanta Working Paper , Paper 2020-1

Working Paper
Nonlinear Budget Set Regressions for the Random Utility Model

This paper is about the nonparametric regression of a choice variable on a nonlinear budget set when there is general heterogeneity, i.e., in the random utility model (RUM). We show that utility maximization makes this a three-dimensional regression with piecewise linear, convex budget sets with a more parsimonious specification than previously derived. We show that the regression allows for measurement and/or optimization errors in the outcome variable. We characterize all of the restrictions of utility maximization on the budget set regression and show how to check these restrictions. We ...
Working Papers , Paper 2219

Working Paper
Impact of first-birth career interruption on earnings: evidence from administrative data

This paper uses unique administrative data to expand the understanding of the role women's intermittency decisions play in the determination of their wages. We demonstrate that treating intermittency as exogenous significantly overstates its impact. The intermittency penalty also increases in the education level of the woman. The penalty for a woman with a high school degree with an average amount of intermittency during six years after giving birth to her first child is roughly half the penalty for a college graduate. We also demonstrate the value of using an index to capture multiple ...
FRB Atlanta Working Paper , Paper 2014-23

Report
Should Mothers Work? How Perceptions of the Social Norm Affect Individual Attitudes Toward Work in the U.S.

We study how peer beliefs shape individual attitudes toward maternal labor supply using realistic hypothetical scenarios that elicit recommendations on the labor supply choices of a mother with a young child and an information treatment embedded within representative surveys. Across the scenarios, we find that individuals systematically overestimate the extent of gender conservativeness among the people around them. Exposure to information on peer beliefs leads to a shift in recommendations, driven largely by information-based belief updating. The information treatment also increases ...
Staff Reports , Paper 1038

Journal Article
Cell Phone Data Suggest Persistent Differences in Work from Home by Income, Race, and Education during the Pandemic

Social-distancing policies to combat the spread of COVID-19 led to an initial spike in work from home. We use high-frequency cell phone geolocation data to assess how work from home has evolved since then. We show that work from home declined as restrictions eased but remains above pre-pandemic levels. In addition, we find that differences across income, race, and education in work from home that emerged with the pandemic persist a year later.
Economic Bulletin , Issue March 31, 2021 , Pages 4

Working Paper
The supply side of discrimination: evidence from the labor supply of Boston taxi drivers

This paper investigates supply-side discrimination in the labor market for Boston taxi drivers. Using data on millions of trips from 2010?2015, I explore whether the labor supply behavior of taxi drivers differs by the gender, racial/ethnic, or age composition of Boston neighborhoods. I find that disparities in shift hours due to neighborhood demographics exist even when differences in local earnings opportunities are taken into account. I observe heterogeneity in the amount that drivers discriminate and find that this discrimination is primarily statistical rather than taste-based. As ...
Working Papers , Paper 18-2

Journal Article
Data Revisions of Aggregate Hours Worked: Implications for the Europe-U.S. Hours Gap

In this article, we document that the Organisation for Economic Co-operation and Development (OECD) and the Conference Board?s Total Economy Database (TED) have substantially revised their measures of hours worked over time. Relying on the data used by Rogerson (2006) and Ohanian et al. (2008), we find that, for 2003, hours worked per person in Europe is 18 percent lower than hours worked in the United States. Using the 2016 releases of the same data for 2003 yields a gap that is 40 percent smaller?that is, only 11 percent lower. Using labor force survey data, which are less subject to data ...
Review , Volume 101 , Issue 1 , Pages 45-56

Working Paper
Estimation of Dynastic Life-Cycle Discrete Choice Models

This paper explores the estimation of a class of life-cycle discrete choice intergenerational models. It proposes a new semiparametric estimator. It shows that it is root-N-consistent and asymptotically normally distributed. We compare our estimator with a modified version of the full solution maximum likelihood estimator (MLE) in a Monte Carlo study. Our estimator performs comparably to the MLE in a finite sample but greatly reduces the computational cost. The paper documents that the quantity-quality trade-offs depend on the household composition and specialization in the household. Using ...
Working Papers , Paper 2015-20

Journal Article
Marketization of Home Production and Gender Gaps in Working Hours

Gender gaps in working hours vary widely across member countries of the Organisation for Economic Co-operation and Development. This article summarizes the key results from Duval-Hernández, Fang, and Ngai (2021), who study the source of cross-country differences and what kind of policies can reduce the gap in working hours between women and men.
Policy Hub , Volume 2021 , Issue 7 , Pages 7

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Bick, Alexander 16 items

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